The market on the last trading day of the week saw the biggest one day fall in a month. Sensex slipped over 500-points and the Nifty closed 165-points lower. For the week the market closed half a percent in the red.
The Nifty closed at 10,195.20 levels and the Sensex at 33,176 mark.
The market is likely to remain range bound for the rest of the calendar year despite earnings growth says Gautam Duggad Head-Research, Institutional Equities, MoSL.
The Indian equity market seems to be under performing because of our own domestic factors like newsflow on macro-economic front, political front etc. The volatility is expected to continue for the rest of the year given that we are heading into a very heavy election calendar and there is uncertainty on that front.
Moreover, the RBI circular on NPAs will also likely put pressure on bank earnings, he says.
With regards to Q4 earnings, they expect the numbers to be strong on back of rural and urban recovery in consumption, says Duggad.
Sector specific, he says stay with sectors showing earnings visibility and focus more on quality – spaces like autos, select private banks, consumption, oil and gas, IT to some extent. There is bottom up opportunity in these spaces.
The house is very bullish on rural consumption theme and like Future Consumer which is a good play in modern retail. According to him, IT is being used more as a hiding place in the current market.
In the same interview, other market experts like SP Tulsian of sptulsian.com, Prakash Gaba of prakashgaba.com, Mitessh Thakkar of mitesshthakkar.com, Dipan Mehta of Member, BSE & NSE and Prakash Diwan.
For full discussion watch video
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
